In Immigration, Jobs and Economy, News Releases

FOR IMMEDIATE RELEASE
March 6, 2024

Contact:
Laura Millard Ross
lauramr@mlpp.org
(517) 281-1084

New report shows that asylum seekers and immigrants contribute millions of dollars to Michigan’s economy  

Report underscores the need to better support and welcome these newcomers here in the Great Lakes State

LANSING—Today, the Immigrant Research Initiative (IRI) co-released a report with the Michigan League for Public Policy that projects the expected wages, economic growth, and state and local tax contributions from asylum seekers and newly arriving immigrants in Michigan. 

The Michigan report, Economic Projections for Asylum Seekers and New Immigrants, is one of several state-level reports that accompany a national report by the IRI showing that immigrants in the United States contribute millions of dollars in state and local taxes. 

“The current arrival of immigrants to the United States has certainly shown us the challenges that come with managing thousands of new residents at a time. Demographic trends, however, tell us that these challenges are largely temporary. From the moment immigrants start working in the United States, they show a tremendous capacity for upward mobility and economic success,” said Anthony Capote, senior policy analyst at Immigration Research Initiative and co-author of the national report and Michigan’s state report.

Here in Michigan, the IRI model projects that for each 1,000 newly arrived immigrant workers, the aggregate wages paid is $22 million in the first year of arrival, resulting in direct economic benefits at both the local and state level. These far-reaching benefits include the value of the work that is produced in the regions in which these new residents are employed, the added local spending power within their communities and an estimated increase of approximately $1.6 million in local and state taxes per 1,000 workers just in the first year. 

After about five years, as higher wages are earned and more workers move into full-time jobs, aggregate wages are likely to increase to about $35 million according to the IRI model, resulting in a projected $2.5 million in local and state tax revenue per 1,000 workers.  

“History has shown us that immigrants do experience upward economic mobility over time as they get their footing in the economy, but it’s critical that we better support these newcomers–both immigrants and asylum seekers–with state policy changes that will help them navigate barriers to employment, transportation, housing, language access and other basic necessities that are essential to making ends meet,” said Monique Stanton, president and CEO of the Michigan League for Public Policy. “This is especially critical given Michigan’s alarming population challenges and the fact that immigration has emerged as a key driver in both current and future population growth here in our state.”

“Welcoming and better supporting immigrants and asylum seekers not only closely aligns with a recommendation of the Growing Michigan Together Council and is key to our state’s growth, it’s also the right thing to do from a humanitarian standpoint,” said Simon Marshall-Shah, senior policy analyst with the Michigan League for Public Policy. “And creating an immigrant-inclusive economy benefits all of us. The sooner that individuals and families are able to establish themselves here in Michigan, the sooner they can become a vital part of our labor force and integral, contributing members of our communities.”

According to Michigan’s report, new immigrants arriving in the state can expect to earn a median annual wage of about $22,000, and if there are two wage earners in a family, the combined income would be about $44,000. While this is slightly above the federal poverty level, newly arriving immigrants will still have a hard time making ends meet. Once immigrants have been here about five years, their annual wages will likely increase to about $35,000 or $70,000 for a two-income household. 

The Michigan report specifically points to the need to expedite work authorization for immigrants and asylum seekers, as they typically experience delays of six months or longer to gain work authorization as it stands today. Having access to legal services is critical in that process, which can be better facilitated with additional municipal and state funding that goes directly to entities providing legal aid and case management services.

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The Michigan League for Public Policy www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to use data to educate, advocate and fight for policy solutions that undo historic and systemic racial and economic inequities to lift up Michiganders who have been left out of prosperity. It is the only state-level organization that addresses poverty in a comprehensive way